Cabot Oil & Gas Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Cabot Oil & Gas Corporation (NYSE:COG) reported net income above Wall Street’s expectations for the second quarter. Cabot Oil & Gas Corporation is an independent company engaged in the development, exploitation and exploration of oil and gas properties in North America.

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Cabot Oil & Gas Earnings Cheat Sheet for the Second Quarter

Results: Net income for the independent oil and gas company rose to $54.7 million (53 cents per share) vs. $21.7 million (21 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 20.2% to $240.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: COG reported adjusted net income of 41 cents per share. By that measure, the company beat the mean estimate of 29 cents per share. Analysts were expecting revenue of $240.3 million.

Quoting Management: “This production growth clearly was the leading driver of our financial results and operational gains,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “An indicator of our significant momentum on this front was not only the 49.1 percent increase in natural gas but also the 21.7 percent increase in crude/condensate/NGL volumes, which resulted in Cabot’s highest quarterly production.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 1.7% in the first quarter and fell 7.1% in the fourth quarter of the last fiscal year.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 15 cents versus a mean estimate of net income of 12 cents per share.

Net income has increased 5.4% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than twofold from the year earlier quarter.

Competitors to Watch: EOG Resources, Inc. (NYSE:EOG), Pinnacle Gas Resources, Inc. (PINN), Vanguard Natural Resources, LLC (NYSE:VNR), Magnum Hunter Resources Corp (NYSE:MHR), Anadarko Petroleum Corp. (NYSE:APC), PrimeEnergy Corporation (NASDAQ:PNRG), SM Energy Co. (NYSE:SM), EV Energy Partners, L.P. (NASDAQ:EVEP), Continental Resources, Inc. (NYSE:CLR), and Range Resources Corp. (NYSE:RRC).

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(Source: Xignite Financials)